Association calls for fishery deregulation

Association calls for fishery deregulation

JAKARTA (JP): The Association of Indonesian Fishery
Entrepreneurs called on the government yesterday to further
streamline industry regulations to boost competitiveness in
overseas markets.

Association chairman Sudwikatmono said here yesterday the
numerous licenses fishery companies were required by the
government had contributed to the industry's high operating
costs.

Sudwikatmono, also an executive of the publicly listed
Indocement Prakarsa, said businesses in the industry had to get
about 18 licenses from provincial administrations and relevant
ministries in Jakarta in order to operate.

He said it cost a lot and took several trips to Jakarta to get
the licenses.

"Ministries in Jakarta should only issue the main licenses.
Less important permits should be provided by provincial
administrations to reduce transportation costs," he was quoted by
Antara as saying on the sidelines of the association's national
congress.

He said the association had proposed simplifying the licensing
process to the government.

"The government gave us a positive response. But I don't know
when it is going to simplify the licensing," he said.

Fishery companies are also required to pay a number of levies
to provincial administrations.

He said provincial administrations often created new rulings
to raise money from fishery companies.

"We shall submit a detailed proposal to the government in the
near future on the levies and retributions which need to be
lifted," he said, adding that many shrimp farming companies had
gone bankrupt under the weight of the levies and retributions.

Investors have voiced concern over official levies they must
pay provincial administrations.

This was addressed by the government in a deregulation package
in July which cut 42 different local taxes to only nine taxes,
and slashed 192 categories of local levies to 30 categories.

The deregulation measures also prohibit the issuance of new
taxes and levies by provincial administrations without approval
from the Ministry of Home Affairs and Ministry of Finance.

But business says that despite the deregulation, regional
governments continue to create new levies and taxes to add their
income. (jsk)